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Altcoins Selling Pressure Persists As Exchange Inflow Hits 2025 High — Details

Altcoins have not quite recovered from the significant downturn that hit the financial markets a week ago. Most large-cap cryptocurrency assets, including Bitcoin, are either revisiting their low from the previous week or struggling to mount any real pressure from their current position. For instance, the largest altcoin by market cap, Ethereum, after briefly returning to above $4,200 earlier this week, is back to its level in the aftermath of the October 10th bloodbath. According to the latest on-chain data, it appears that investors are increasingly losing confidence in the long-term promise of the altcoins. Are Altcoins In For A Deeper Correction? In a new post on X, CryptoQuant’s Head of Research, Julio Moreno, revealed that altcoins are making their way in large volumes to centralized exchanges. This fresh trend reflects a less optimistic shift in investor sentiment after a particularly positive start to the month of October. Related Reading: BNB Active Addresses Hit Record 3.6 Million – Analyst Explains Network Growth The relevant indicator here is the Exchange Inflow Transaction Count, which measures the number of transactions involving the deposit of a cryptocurrency (altcoins, in this context) into a centralized exchange. This metric can be used to assess investor sentiment at every given moment in the market. A significant rise in the Exchange Inflow Transaction is typically considered a bearish signal, as it suggests that investors are moving their assets to centralized exchanges to sell. Ultimately, this trend could mean imminent selling pressure for the cryptocurrency (or group of digital assets, as in this case). Moreno revealed in his post on X that the number of transactions sending altcoins onto trading platforms has reached a new high in 2025. As observed in the chart below, the world’s largest cryptocurrency exchange by trading volume, Binance, has been responsible for the majority of the cryptocurrencies flowing into these centralized platforms. While the market already seems to be undergoing a significant correction, a continuous flow of assets into exchanges could mean an extended period of downward movement for the altcoins. However, the peak of this metric could also be significant, as it could signal the bottom and potential reversal of the altcoin market. Altcoin Market Cap Falls To $1.45 Trillion According to the latest data, the cryptocurrency market (excluding Bitcoin) is valued at around $1.45 trillion, reflecting an over 1% drop in the past 24 hours. What’s more worrying is the market’s record in the past week, as the altcoins have lost nearly 13% of their value over the last seven days. Related Reading: Solana Meme Economy: The Culture That Drives Billions In Volume – Here’s How Featured image from Shutterstock, chart from TradingView The Crypto Basic

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UK’s tax authority HMRC Cracks Down on Crypto Tax Dodgers with 65K Letters

HM Revenue & Customs (HMRC), the UK government agency responsible for collecting taxes, managing customs, and administering payments, sent nearly 65,000 nudge letters to crypto investors in the 2024–25 tax year. This more than doubles the 27,700 sent in 2023–24, totaling over 100,000 letters in four years. The letters urge investors to correct undeclared capital gains from crypto transactions. Exchange Data Drives Targeted Probes HMRC gathers transaction data from UK crypto exchanges to identify tax discrepancies. Disposals, including coin swaps, are taxable as capital gains. From 2026, the OECD’s Crypto-Assets Reporting Framework will provide automatic global exchange data, enhancing HMRC’s oversight. Rising Crypto Use Spurs Scrutiny The Financial Conduct Authority estimates seven million UK adults hold crypto, up from five million in 2022. Complex tax rules catch many investors unaware of taxable events like swaps. Compliance demands grow as crypto prices climb. Nudge Letters Encourage Compliance Recipients have 60 days to respond or disclose via HMRC’s Cryptoasset Disclosure Facility to avoid penalties. Failure to comply triggers formal investigations, with penalties for late payments on undeclared gains. The Crypto Basic